FHA Streamline Refinancing
So you’ve bought a house! That’s an exciting investment and it feels so great to have a place to call home. However, in the excitement of homeownership, how can you be certain your mortgage rates are as low as they could be? Whether you’ve just bought your home or you’re years into the process, it’s important to pay attention to the market to make sure you aren’t paying more than you should be. This week we’re going to give you the low-down on FHA Streamline Refinancing. We’ll uncover what refinancing is, how the FHA backing awards more stability, and tell you where you can get started.
What is refinancing?
By definition, refinancing is replacing an existing debt with a different debt under new obligatory terms. For home owners, this means taking the amount you owe on your current home and restructuring it for some reason. Whether it be a shorter or longer mortgage term, benefit from lower rates, consolidate debt, or any number of other reasons, refinancing is always something home owners should be aware of, especially after spending a few years paying the same mortgage rate. Refinancing can be done on most types of loans, so it’s important to be aware of the current housing trends to make sure you’re paying the lowest possible rate on your home.
FHA Streamline Refinancing
The group who is usually told they would benefit most from FHA Streamline Refinancing includes individuals who took out an FHA loan on a home which was endorsed before May 31, 2009. However, those who have very recently purchased a home loan may be even better suited to refinance. Because these individuals are at the beginning of their amortization cycle, refinancing can make sure your payments go toward the principal, not just interest payments. Furthermore, the small fee which is taken on a new FHA loan can be offset with an MIP credit if borrowers refinance within the first six months to three years. If your mortgage has not been delinquent in the last year and you find an FHA approved lender, you may be a great candidate for this type of refinancing! There are no closing costs or appraisals necessary for FHA Streamline Refinancing, so it is in the best interest of homeowners who meet the qualifications we’ve laid out to talk to a lender about options. Because FHA loans insure the lenders, buyers aren’t gouged with extra costs and fees. This point of the FHA program was to make housing achievable to those for whom homeownership may have been out of reach, and all approved lenders are committed to providing lower rates to keep the housing market stable and affordable for everyone!
Talking with an approved lender about your current mortgage setup is the best way to get started. You can check out the FHA Streamline Refinance section of our website or call our office to learn more about how refinancing would look for you. As a direct lender which specializes in FHA loans and refinancing, our team can answer any questions you may have. With the help of specialized lenders, you can be positive your rates are as low as they can be.